08-12-2014, 11:13 PM
(This post was last modified: 08-12-2014, 11:17 PM by earthtodan.)
(08-10-2014, 12:37 PM)Turvok Wrote: As for the industrials, I guess I haven't done enough research on them yet to find another one I like.
Industrial conglomerates can be difficult to understand economically because they're so diverse. The best example of this is probably 3M. The company's website gives you an idea of the dizzying array of nondescript products that simply permeate the built world. So you just have to approach it from a bottom-up perspective and evaluate it by the numbers. But it has a reputation for excellent management that invests for the future and doesn't use financial gimmicks. Personally it's too expensive so I don't own any, but I'm waiting for a pullback.
Another thing that appeals to me about industrials is that they can invest a lot of time and money into R&D to come up with wide-moat products that are hard to displace. GE is one of my favorites, and I added to my position today. Jet engines, train engines, wind turbines, oil exploration equipment, power & grid, water treatment, the list goes on and on and on. Never mind the consumer appliances, they might be getting rid of that. Also be aware that a large part of their market cap is a bank, which they're slowly spinning off.
UTX is my other core industrial holding, which I picked up recently and have been adding to for a cost basis of $107. It's the other major jet engine maker, plus they make Sikorsky helicopters and aerospace parts, Otis elevators, HVAC equipment, and building control systems. It takes years to develop most of these things and gain credibility in the end markets.
I also like PNR as a water infrastructure play, although I see less of a moat, so I picked up 1/2 position last week on the dip.
Quote: With MerrilEdge, is that $25k in assets or an initial deposit? I do have over $25k in my DGI account.
That's $25k in assets. I have a big enough portfolio now that I actually get 100 trades a month. It's extremely liberating. When I have cash I can average down into multiple positions day by day, or redirect dividends wherever I want, and not worry about fees.
http://www.merrilledge.com/pricing
You get access to Morningstar, S&P, and of course BofA/Merrill research reports.